Goldman's Courvalin Says Oil Markets Have 'No Buffer' Against High Prices

The video discusses the current state of the oil market, focusing on the lack of buffers such as inventories and supply elasticity. It highlights the significant impact of Russian oil flow disruptions on global prices, potentially leading to $150 per barrel. The discussion explores alternative supply sources, including OPEC and shale producers, but emphasizes the inherent volatility of the market and the limited spare capacity available, particularly from Saudi Arabia and the UAE. The potential for market panic if spare capacity is breached is also considered.

What is the last buffer in the oil market when inventories and supply elasticity are exhausted?

• Government intervention

• Price stabilization

• Increased production

• Demand destruction

What is the potential oil price if Russian oil flow disruptions persist for three months?

• $100

• $115

• $150

• $200

Which organization is mentioned as having resistance to increasing oil supply beyond a certain limit?

• NATO

• OPEC

• EU

• UN

What is a significant challenge faced by shale producers in increasing oil supply?

• High taxation

• Bottlenecks on services and labor issues

• Environmental regulations

• Lack of technology

What might cause the oil market to panic according to the discussion?

• A drop in demand

• OPEC's unanimous decision

• Increased shale production

• Breaching Saudi spare capacity